Cisco is once again making headlines with plans for a second wave of layoffs this year, leaving employees in a state of uncertainty and frustration. After a round of job cuts in February that affected around 4,000 workers, the tech giant recently confirmed in an SEC filing that it will be slashing another 7% of its workforce. Despite this announcement, those impacted by the layoffs won't know their fate until mid-September, creating a tense atmosphere within the company.
According to multiple Cisco employees, the company’s internal environment has become increasingly toxic. “This has become the most toxic environment I’ve ever worked in, and the mood as evidenced by comments on internal platforms is as dark as I’ve ever seen it. I’m only waiting until my next big [Restricted Stock Unit] vest to leave, and I know others are too,” said one anonymous employee. Another added that Cisco should shift its focus from annual layoffs to innovation and revenue generation.
These layoffs come on the heels of a disappointing financial performance. Cisco’s net income for the quarter plummeted by 45% compared to the previous year, and revenue fell by about 10% to approximately $13.6 billion. Despite these figures, CEO Chuck Robbins described the fiscal year’s end as a "strong close" and received $31.8 million in total compensation for 2023.
The latest round of layoffs not only highlights Cisco’s ongoing struggles but also raises questions about the company’s future direction and employee morale. As the tech giant grapples with financial challenges, its workforce remains in limbo, waiting to see how these cuts will shape the company’s path forward.
